ESI Registration Dilemma: Do We Register from When We Hit 10 Employees or Now with 17?

Dear Seniors,

In our firm, the number of employees is 17, and now we want to register for ESI. However, as per ESI norms, we should have taken ESI registration when we exceeded 10 employees. Please clarify if I need to register from the date when we surpassed 10 employees or if we can register now with 17 employees and no previous contributions, damages, or penalties.

Thanks,
Ragini

Dear member,

Coverage under the ESI Act, 1948, is compulsory, and a unit (if situated in an implemented area and is of a notified category) becomes coverable/covered on the date when it first employs 10 or more persons. You can try obtaining an ESI Code Number online from the present date, if allowed, but the said date of coverage can be provisional. You can also contact the appropriate Sub-Regional Office of ESIC regarding the matter by indicating the present number of employees to obtain a code number.

Even if your unit does not currently have coverage or may get provisional coverage from the present date as mentioned above, if there is a preliminary survey by the department later on, your unit will be covered retrospectively from the very date it first employed 10 or more persons. Interest and damages are leviable in such cases and cannot be avoided.

Hi Ragini,

In Uttar Pradesh, liabilities of ESI coverage include 10 employees from May 2013.

If you have any further questions or need clarification, feel free to ask.

Best regards, [Your Name]